The Meaning of A Trading Edge

[tradingjournals]

The Meaning of A Trading Edge: Please describe what it means to you. I asking for it because it is my belief that a trader is part of the loop to which the edge is attached/related.

Try to be crisp/succinct in your description, but you can think out loud if you desire/require.

Write it in your own words. Do not be concerned about what others think or would say about your edge description. There is no single perception of an edge, because people and their perceptions/circumstances/etc are generally different.

 

[Runningbear]

A trading edge is the identification of prolonged statistical anomaly in the market - a certain behavior that repeats itself for long enough to be exploited for a profit.

Traders often make the mistake of thinking an edge is a certain skill the trader has. It is not.

An edge is based on provable external data. The likelihood of something happening with greater than 51% probability.

Runningbear

 

[Arjun1]

No such thing as edge.

Risk is the only reality in the markets.

You job as a trader is to minimize/limit/avoid/contain risk from every angle.

 

[Bolimomo]

tradingjournals:

You had started quite a few threads in recent weeks. This one: The Meaning Of A Trading Edge. Past ones: Your Most Valuable Trading Asset Is XXXXXXXX; The One Thing That Changed Everything In Your Trading; etc..

Are you collecting materials to write a journal (as your handle suggested)? Can you tell us your intent?

While your subjects appeared to be serious discussions, when someone else posted a question about the pre-market indicators... your answer:

http://www.elitetrader.com/vb/showthread.php?s=&threadid=204562

tradingjournals
Registered: May 2010
Posts: 582
08-07-10 02:44 PM

"what is the 1st market indicator you look at premarket":

My penis.

Why?


Should we treat you as a serious journalist? Or just a troll?

 

[spindr0]

Quote from tradingjournals:

Try to be crisp/succinct in your description, but you can think out loud if you desire/require.

Write it in your own words. Do not be concerned about what others think or would say about your edge description.

I prefer to cut & paste other people's posts. It sounds so much more erudite taht way.

 

[spindr0]

Quote from Runningbear:

A trading edge is the identification of prolonged statistical anomaly in the market - a certain behavior that repeats itself for long enough to be exploited for a profit.

Traders often make the mistake of thinking an edge is a certain skill the trader has. It is not.

I like that definition of an edge. I'd add that one's skills enhance the result.

I found a "trading edge" during the GFC of '08 and '09 which produced outsized returns for 20 months. But with all of the bail outs, stimulus and printed money, it ended. I guess my 15 minutes of fame is over

Now if Greece would only slide financially into the Aegean...

 

[tradingjournals]

Quote from Bolimomo:

tradingjournals:

You had started quite a few threads in recent weeks. This one: The Meaning Of A Trading Edge. Past ones: Your Most Valuable Trading Asset Is XXXXXXXX; The One Thing That Changed Everything In Your Trading; etc..

Are you collecting materials to write a journal (as your handle suggested)? Can you tell us your intent?

While your subjects appeared to be serious discussions, when someone else posted a question about the pre-market indicators... your answer:



Why?

One cannot be serious all the time, and it was an answer similar to an answer I received in one of the threads I started about traing assets. The answer was not meant to offend anyone, but rather to make people read unusual answers. I have no objection that it gets removed. I hope that my other answers were different. As for the threads, I believe that asking core questions can be of help in pushing readers to extract and share the main juice of their thinking.

I have also received insults or veiled insults in threads I started which I usually skip/ignore. My aim is never to insult anybody because it is not good a thing.

 

[tradingjournals]

Quote from Runningbear:

A trading edge is the identification of prolonged statistical anomaly in the market - a certain behavior that repeats itself for long enough to be exploited for a profit.

You mean place/state/condition that leads to dollars being dropped on the street, but which cannot be seen by everyone?

What is long enough, and how to make sure it is still long enough?

 

[FXWave]

Quote from tradingjournals:

The Meaning of A Trading Edge: Please describe what it means to you. I asking for it because it is my belief that a trader is part of the loop to which the edge is attached/related.

Try to be crisp/succinct in your description, but you can think out loud if you desire/require.

Write it in your own words. Do not be concerned about what others think or would say about your edge description. There is no single perception of an edge, because people and their perceptions/circumstances/etc are generally different.

[4) An edge is just the greater probability of one thing happening over an other


Trading in the zone- Mark Douglas

Once again the 5 Fundamental truths are:
1) Anything can happen
2) You can make Money without knowing what is going to happen next
3) There is a random distribution of wins and losses that define an edge
[4) An edge is just the greater probability of one thing happening over an other
5) Every moment in the market is unique

That book could be quoted all day for trading wisdom but....

Quote by Ram Gopal Verma on his blog:-

"Books make you understand experiences and experiences make you understand books."

 

[tradingjournals]

Quote from Bolimomo:

tradingjournals:

You had started quite a few threads in recent weeks. This one: The Meaning Of A Trading Edge. Past ones: Your Most Valuable Trading Asset Is XXXXXXXX; The One Thing That Changed Everything In Your Trading; etc..

Are you collecting materials to write a journal (as your handle suggested)? Can you tell us your intent?

While your subjects appeared to be serious discussions, when someone else posted a question about the pre-market indicators... your answer:





Why?


Should we treat you as a serious journalist? Or just a troll?

Thought to add that I am trying to contribute like others. I have being exchanging with a 73 year old person who seems to be very interested in reading what others thing. You may catch the discussion at this link:
http://www.elitetrader.com/vb/showthread.php?s=&threadid=49586&perpage=6&pagenumber=2321

As for whether I am serious or a troll, either way you judge is fine with me. By the way, I do not know what a troll is, but I am guessing that it is not something good. You have the right to your opinion.